UNIT 2:(5 Hours) Building Sales Organization: Types of sales organizations and

their structure, Functions and responsibilities of sales person, filling sales

positions, Recruitment, Selection, Training and Development, Development and
Conducting Sales training programme.

UNIT 3: leading sales organization: Sales force motivation, designing and

administering sales force compensation plans, designing contests and incentives,
sales forecasting, sales budget, sales quota, sales territory, building sales reporting
mechanism and monitoring, sales force productivity, sales force appraisal

UNIT 4: introduction to retailing, growing importance of retailing, factors

influencing retailing, strategic retail planning process, retail organization, retail
models, and theory of retail development, modern retail formats, retailing in rural
india.

BUILDING SALES ORGANIZATION

TYPES OF SALES ORGANIZATION-

The Line organization- The chain of command runs from the top sales executives
down through subordinates. All executives exercise line authority, and each
subordinate is responsible only to one person on the next higher level.

The line and staff sales organization- is often found in large and medium sized
firms, employing substantial numbers of sales personnel, and selling diversified
product lines over wide geographic areas.

Functional sales organization- This type, derived from the management theory
developed by Frederick W. Taylor, is based upon the premise that each individual
in an organization, executive and employee, should have as few distinct duties as
possible. The principle principle of specialization is utilized to the fullest extent.

Committee sales organization- the committee is never the sole basis for organizing
a sales department. It is a method organizing the executive group for planning and
policy formulation while leaving actual operations, including implementation of
plans and policies, to individual executives.

FOR DIAGRAM
https://www.marketing91.com/types-sales-organization/

Types Of Sales Organization

The grouping of activities into positions and the charting of relationships of

positions causes the organization to take on structural form. When sales
department is set up in an organization it follows one of these general structures –
Line, Line and Staff, Functional and Committee.

The line sales organization:

 This is the oldest type used in smaller firms and in firms where there is a
small selling force. This limitation restricts them to narrow product line in
limited geographical area.
 All executives have line authority and each subordinate is responsible only
to one higherup.
 They have fixed responsibilities and sales personnel reports directly to the
chief sales executive
 Lines of authority and responsibility are clear and logical, and it is difficult
for individuals to shift or evade responsibilities
 Not appropriate when there is a large sales staff

The line and staff sales organization

 Found in large and medium sized firms selling diversified product lines over
a wide geographical area
 Provides the top sales executive with a group of specialists and experts in
dealer and distributors relations, sales analysis , sales organization, sales
personnel, sales planning, sales promotion, sales training, service, traffic and
warehousing
 Staff sales executives do not have authority to issue orders or directives.
  Staff recommendations are submitted to the top sales executives and after
approval, transmit necessary instructions to the line organization
 Gives time to the staff executives time to study problems before
recommendations

Functional sales organization

 Based upon the concept that each individual in an organization, executive

and employee, should have as few distinct duties as possible
 Salespeople receive instructions from several executives but on different
aspects of their work
 All specialists have line authority and they have a function authority
 There is a great improved performance
 Not feasible for small and medium sized firms

Committee sales organization

 The executive group plans policy formulation while implementation of plans

and policies is done by individual executives
 Many firms have a sales training committee
 Before policies are made and action is taken, important problems are
deliberated by committee members and are measured against varied
viewpoints.

Divisional Structures

This is the kind of structure that is based on the different divisions in the
organization.

A sales organisation may be classified on the basis of product, market or customer

territory, product cum territory and function. They are

 Product type
  Market or customer type
 Territorial type
 Product-cum-territorial type
 Functional type

FUNCTIONS AND RESPONSIBILITIES OF SALES PERSON

Functions Of Sales Organization

According to Bolling, following are the functions of the sales department.

1. Investigation and analysis of products and market, i.e. product and market
research.
2. Adoption of sound sales and marketing policies.
3. Prices and terms of sales.
4. Branding, packaging, and labeling.
5. Channels of distribution.
6. Selection, training and control of salesmen.
7. Territory allocation and quota setting.
8. Remuneration and promotion of salesmen.
9. Advertising and publicity.
10.Sales forecasting, sales campaigns, sales programmes.
11.Warehousing of goods at convenient centers for prompt replacement of
stocks.
12.Sales promotion activities.
13.Selling cost and budgetary control.

The general functions of sales management are

1. Sales planning and sales policies

2. Pricing policy and price fixing
3. Advertising and sales promotion
4. Scientific salesmanship, management and control of sales force.
 5. Marketing research
6. Planning and control of sales operations and control of sales cost.
7. Selection and management of channels of distribution.
8. Branding, packaging and labeling.
9. After-sale service, if necessary.

The Major Functions of a Sales Manager are

1. Selection of the sales force

2. Training of the sales force
3. Motivating the sales force
4. Controlling the sales force
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Problem of recruitment and selection arises when:

1. Starting a new company

2. Resigning and retiring of existing salesmen

3. Death of existing salesmen

4. Suspending of existing salesmen

5. Growth and development of company’s operations

6. Entering into new territories

7. Developing and introducing new products

Salesman is not only employee of a company, but he is its responsible

representative; he is not dealing only with selling products, but also with goodwill
and reputation of company. A right salesman can create positive effect on sales
volume, profitability, customer satisfaction, dealer effectiveness, company’s
goodwill, promotional efforts, and so forth.
While recruiting and selecting salespersons, job analysis (consisting of job
description and job specification) is to be made for better selection. Recruitment
and selection are interdependent decisions. Let us discuss both terms separately.

Recruitment:

Recruitment means searching for prospective candidates and inspiring them to

apply for the post. Recruitment ends on the last day/date of receiving applications.
Salesmen can be recruited through a number of sources.

Sources of Recruiting Sales Force:

Main sources, widely practiced in India, includes:

1. Advertisement

2. Other firms

3. Middlemen

4. Personal recommendations

5. Recommendation of existing staff

6. Special recruitment agencies

7. Private training institutes

8. Colleges and academic institutes, etc.

Types of sources to be used for recruiting the salesmen depend on certain criteria,
like type of products to be sold, types of customers to be served, paying capacity of
company and type of remuneration plans, and other relevant factors.

Selection:
Selection means selecting the fixed number of suitable candidates from those who
applied for the posts. Selection process starts as soon as recruitment ends.
Recruitment considers all applications received in a due date while selection
considers only the required number of most suitable candidates.

There is no ideal selection process that most companies can follow. Normally, for
selecting salesmen, the simple and short selection process is followed. However,
some companies, when more salesmen are to be selected at time, also follow
lengthy and systematic selection process. Selection process depends on types of
salesmen, cost and financial position of company, time available, company’s
objectives, and so forth.

Steps in Selection Process:

Systematic selection process consists of following steps:

1. Receiving applications

2. Screening applications

3. Preliminary interview

4. Written tests

5. Final interview

6. Medical examination

7. Final selection

8. Appointment and induction

Important Conditions:

At the time of final selection or appointment of salesmen, following conditions

must be made clear:

1. Time to resume the duty

2. Company’ marketing objectives, policies, and strategies

3. Duties and restrictions

4. Place of work

5. Reporting system or procedure

6. Bill collecting system

7. Remuneration and incentives

8. Training and expenses